Contributions In Lieu of Taxes
Because EWEB is a municipal utility and does not pay taxes, it instead provides
6 percent of its retail electric revenues and a portion of its wholesale power
revenues to the City of Eugene. Such payments are commonly known as contributions in lieu of tax, or CILT
State law says "a city owning and operating a municipal electric system ... shall
... pay to itself not less than three percent of the system's annual gross operating
revenue." In 1955, EWEB began making payments at the 6 percent rate at the request
of the City Council. Changes to the City Charter in 1976 stated that this rate of
payment "shall continue until changed by agreement between the Board and the Council."
In addition, EWEB has made voluntary in lieu of tax payments to other local entities
such as Lane Community College and the City of Springfield.
The utility has made CILT payments since 1943 and has contributed approximately
$216 million over the years.